European leaders to hold talks on world financial crisis

Prime Minister Gordon Brown will host French President Nicolas Sarkozy, German Chancellor Angela Merkel and Romano Prodi, who, after resigning as Italy's prime minister last week, will be on one of his last official trips.

President Jose Manuel Barroso, head of the European Union (EU)'s executive arm, will also join them.

On the agenda will be issues including the role of banks in the world economy and calls for greater transparency in the wake of the instability triggered by the crisis in the US subprime mortgage market.

Two recent incidents have brought the situation into sharper focus in Europe -- the massive losses caused by a rogue trader at French bank Societe Generale unveiled last week and the problems of British lender Northern Rock.

Societe Generale junior trader Jerome Kerviel allegedly made over 50 billion euros (73 billion dollars) in unauthorised trades, provoking 4.9 billion euros (7.15 billion dollars) in losses, which the bank announced last week shortly after the worst losses on the European markets since September 11, 2001. - DDNEWS